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NKD acquired by private equity firm TDR Capital

Translated by
Barbara Santamaria
Published
today Mar 20, 2019
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London-based private equity firm OpCapita has sold German clothing e-tailer NKD to funds advised by TDR Capital. The transaction is subject to customary antitrust approvals.


The brand has headquarters in Bindlach, Germany. Photo - NKD



The value clothing retailer was sold for an undisclosed sum, estimated at around 300 to 350 million euros according to media reports. Goldman Sachs advised on the deal. TDR has over 8 billion euros of committed capital and is also based in London.

NKD’s Bindlach headquarters will see a number of new jobs created over the coming years, and the brand will open 100 new stores in Germany alone. Additionally, there are plans to expand the company’s logistics capabilities. The efforts will be aimed at further establishing NKD in the affordable fashion market.

Ulrich Hanfeld will remain as CEO and work together with TDR Capital to manage the firm’s growth strategies.
This will include driving growth across existing stores and online channels, opening new locations in countries including Italy, and expanding into new markets, Hanfeld said.

OpCapita acquired NKD in 2013. Under its ownership, the brand led a successful turnaround, going from a loss-making business to one with an Ebitda profit of 45 million euros in 2018. The improvement was achieved by reviewing the company’s store portfolio, supply chain and pricing strategies.

Currently, 97% of the company’s stores are profitable, the brand said. It has been expanding its retail presence over the last year, and sales continued to increase in 2018.  

“We would like to thank the OpCapita team for their invaluable support and guidance. We have mastered a successful turnaround in recent years, thereby paving the way for ongoing sales growth and a further increase in profitability.  With TDR Capital, we have found the perfect partner to accompany us during the next stage of our company's development,” said Hanfeld about the transaction.

“We are expecting to see robust sales growth and a further increase in our profitability in the years to come – both in comparable sales areas and as a result of expansion. For the current 2019 financial year, we are again planning a strong expansion of our existing markets, with a clear focus on our German home market. We will be managing our growth strategies from our corporate headquarters in Bindlach and are planning to create more jobs across all areas of the company,” Hanfeld continued.

With a total of 1,800 stores in Germany, Austria, Italy, Slovenia and Croatia, an online shop and over 8,000 employees, NKD is one of the largest fashion retail companies in Germany.

NKD employed 6,350 people in Germany at the end of financial year 2018. Founded in 1962, the retailer offers everything from the latest styles for men, women and children to performance sportswear, soft furnishings, and home decor, as well as selected branded ranges.
 

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